DexCom (NASDAQ:DXCM) Shares Gap Up – Still a Buy?

DexCom, Inc. (NASDAQ:DXCM) gapped up before the market opened on Friday . The stock had previously closed at $57.82, but opened at $59.91. DexCom shares last traded at $60.8840, with a volume of 1,069,340 shares changing hands.

Analyst Upgrades and Downgrades

DXCM has been the topic of a number of research reports. Citigroup reissued a “buy” rating and set a $79.00 price objective (down from $84.00) on shares of DexCom in a report on Monday, May 4th. Raymond James Financial set a $81.00 price objective on DexCom in a report on Friday, May 1st. Sanford C. Bernstein set a $77.00 price objective on DexCom in a report on Friday, May 1st. Wells Fargo & Company decreased their price objective on DexCom from $93.00 to $85.00 and set an “overweight” rating on the stock in a report on Friday, February 13th. Finally, Weiss Ratings raised DexCom from a “sell (d+)” rating to a “hold (c-)” rating in a report on Wednesday, March 4th. Three equities research analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, DexCom presently has an average rating of “Moderate Buy” and an average price target of $83.22.

DexCom Stock Up 6.8%

The company has a current ratio of 1.95, a quick ratio of 1.64 and a debt-to-equity ratio of 0.42. The stock has a 50 day simple moving average of $63.69 and a 200 day simple moving average of $65.92. The firm has a market capitalization of $23.83 billion, a PE ratio of 26.49, a PEG ratio of 1.01 and a beta of 1.40.

DexCom (NASDAQ:DXCM) last announced its quarterly earnings results on Thursday, April 30th. The medical device company reported $0.56 EPS for the quarter, topping analysts’ consensus estimates of $0.47 by $0.09. The business had revenue of $1.19 billion for the quarter, compared to analysts’ expectations of $1.17 billion. DexCom had a return on equity of 33.33% and a net margin of 19.31%.The business’s quarterly revenue was up 15.0% on a year-over-year basis. During the same period in the previous year, the firm earned $0.32 EPS. As a group, sell-side analysts forecast that DexCom, Inc. will post 2.56 earnings per share for the current year.

Insider Buying and Selling

In other news, Director Bridgette P. Heller sold 1,012 shares of DexCom stock in a transaction that occurred on Tuesday, May 12th. The stock was sold at an average price of $60.01, for a total value of $60,730.12. Following the sale, the director directly owned 25,007 shares in the company, valued at approximately $1,500,670.07. This trade represents a 3.89% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Michael Jon Brown sold 1,700 shares of DexCom stock in a transaction that occurred on Wednesday, April 15th. The stock was sold at an average price of $63.04, for a total value of $107,168.00. Following the completion of the sale, the executive vice president owned 111,204 shares in the company, valued at approximately $7,010,300.16. This represents a 1.51% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 4,412 shares of company stock worth $278,143. Corporate insiders own 0.28% of the company’s stock.

Institutional Investors Weigh In On DexCom

Large investors have recently made changes to their positions in the business. Reflection Asset Management bought a new stake in shares of DexCom in the 4th quarter worth approximately $25,000. Ascentis Independent Advisors bought a new stake in shares of DexCom in the 1st quarter worth approximately $25,000. CVA Family Office LLC grew its position in shares of DexCom by 48.5% in the 4th quarter. CVA Family Office LLC now owns 450 shares of the medical device company’s stock worth $30,000 after buying an additional 147 shares during the last quarter. MCF Advisors LLC bought a new stake in shares of DexCom during the fourth quarter valued at approximately $32,000. Finally, ORG Partners LLC boosted its position in shares of DexCom by 124.3% during the fourth quarter. ORG Partners LLC now owns 507 shares of the medical device company’s stock valued at $34,000 after purchasing an additional 281 shares in the last quarter. 97.75% of the stock is currently owned by institutional investors.

About DexCom

DexCom, Inc is a medical device company that develops, manufactures and distributes continuous glucose monitoring (CGM) systems for people with diabetes. Its products are designed to provide near real-time glucose readings, trend information and alerts to help patients and clinicians manage insulin dosing and reduce hypoglycemia and hyperglycemia. The company’s offerings combine wearable glucose sensors, wireless transmitters and software applications that deliver data to smartphones, dedicated receivers and cloud-based platforms for remote monitoring.

Founded in 1999 and headquartered in San Diego, California, DexCom has focused its business on advancing CGM technology and expanding clinical use beyond traditional insulin-dependent populations.